978-1285866352 Chapter 11 Solution Manual Part 2

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WORK APPLICATION 11-5

Think of a time when a major change initiative at an organization you were or are

affiliated with succeeded or failed. Identify possible reasons for the success or

failure, and tie them to the three phases of the change model—unfreezing,

changing, and refreezing.

LO 11-7. Identify the major reasons for resisting change.

Change is not a risk-free proposition. Change often brings with it pain and stress. Some people get demoted,

reassigned, relocated, or even fired from their jobs. With all of these negative possibilities, the first reaction

of most people is to resist any attempts at making a change. Some of the major reasons why people resist

change are the threat of one’s self-interest, lack of conviction that change is necessary, fear of being

manipulated, threat to existing cultural values, lack of confidence that change will succeed, distrust of

leadership, and uncertainty.

D. Why People Resist Change

See Exhibit 11.2 Reasons for Resisting Change (Slide 11-30)

1. Threat to One’s Self-Interest

An employee’s self-interest in protecting his or her power, position, prestige, pay, and other company

2. Uncertainty

3. Lack of Confidence That Change Will Succeed

4. Lack of Conviction That Change Is Necessary

5. Distrust of Leadership

6. Threat to Existing Cultural Values

7. Fear of Being Manipulated

When people perceive change as an attempt by management to manipulate them, they will resist.

WORK APPLICATION 11-6

Give an example of when you were resistant to change. Be sure to identify your

resistance with one of the seven reasons in Exhibit 11.2.

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CONCEPT APPLICATION 11-3

Resistance to Change

Answers to the Concept Application questions are at the end of lecture outline.

LO 11-8. Discuss some of the recommendations for minimizing resistance to change.

To overcome resistance to change, effective leaders must do the following: Anticipate change and prepare

people for the necessary adjustments that change will trigger, avoid micromanaging and empower people to

implement the change, ensure that change efforts are adequately staffed and funded, communicate a strong

message about the urgency for change, celebrate and maintain ongoing communication about the progress of

change, and show a strong commitment to the change process.

E. Minimizing Resistance to Change

See Exhibit 11.3: Recommendations for Minimizing Resistance (Slide 11-31, Discussion Question on 11-32

and Key Terms on 11-33)

Effective leaders do not downplay resistance or perceive it as a discipline problem to be dealt with through

punishment or coercion.

Effective change agents are also good listeners who are open to feedback from followers

Resistance to change is said to have a cognitive, emotional, and behavioral dimension.

 From a cognitive perspective, there is a rational calculation from both sides (supporters and non-

 This is why leaders should form a powerful coalition of supporters and experts during the early stages

 From an emotional perspective, the fear of loss (status, position, job, pay, and so forth) and fear of the

 From a behavioral perspective, resistance to change focuses on the actions of members opposed to the

Effective communication before, during, and after a change has been implemented will prevent

misunderstandings, false rumors, and conflict.

A stated purpose describes what is changing with specific targets identified and prioritized, people potentially

Ultimately it all comes down to creating an organizational climate that supports change and addresses the fears

Self-Assessment 11-2

Personality, Leadership, and Change

If you want students to complete the Self-Assessment exercises throughout the

book, you may want to tell students and spend a little time talking about them.

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LEARNING OUTCOMES AND ANSWERS

The chapter summary is organized to answer the learning objectives for Chapter 11. They are also found at the end

of the chapter and can be used as short answer questions on exams.

These learning outcomes are included in the test bank in the conceptual section.

1. Discuss the role of strategic leadership in the strategic management process.

Strategic leaders establish organizational direction through vision and strategy. They lead the strategic

2. Identify the five major decision categories in the strategic management process.

The five key decision categories are: (1) craft a strategic vision and mission statement, (2) set strategic

3. Explain the relationship between objectives and strategies.

Corporate objectives are the desired outcomes that an organization seeks to achieve for its various stakeholders.

4. Describe the relevance of analyzing an organization’s internal and external environment as part of

strategy formulation.

The basic premise of an environmental (situation) analysis is that organizations need to formulate strategies to

take advantage of external opportunities and to avoid or reduce the negative impact of external threats.

Monitoring the industry and competitive environment presents emerging opportunities or threats that can

5. Explain the importance of strategy evaluation in the strategic management process.

Strategy evaluation involves three fundamental activities: (1) reviewing internal and external factors that are the

6. Describe the change management process using Kurt Lewin’s force-field model of change.

The force-field model proposes that the change process can be divided into three steps: unfreezing, changing,

that the proposed change is implemented. It is action oriented. The leader must empower followers to act on

the change by giving them resources, information, and discretion to make decisions. The leader removes

7. Identify the major reasons for resisting change.

Change is not a risk-free proposition. Change often brings with it pain and stress. Some people get demoted,

reassigned, relocated, or even fired from their jobs. With all of these negative possibilities, the first reaction of

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8. Discuss some of the recommendations for minimizing resistance to change.

To overcome resistance to change, effective leaders must do the following: Anticipate change and prepare

people for the necessary adjustments that change will trigger, avoid micromanaging and empower people to

REVIEW QUESTION ANSWERS

These review questions are included in the test bank in the conceptual section.

1. Discuss how an organization’s objectives may affect its search for opportunities.

Objectives should guide the search for and evaluation of opportunities. Long-term objectives provide a basis for

screening possible opportunities. Objectives may provide quantitative and qualitative criteria that the firm will

2. What are the key elements of the strategic management process?

The strategic management process begins with the strategist’s vision. This is a vision statement of where the

organization wants and needs to be in the future, given the nature of the environment in which it exists. The

vision statement answers the question, “What does the organization want to or aspire to become?” The vision

statement lays the foundation for the development of a mission statement that reflects the organization’s core

values, beliefs, culture, and purpose. The mission statement answers the question, “What is the organization’s

3. What is the difference between a strategic vision and a mission statement?

A strategic vision is an ambitious view of the future that everyone in the organization can believe in and that is

not readily attainable, yet offers a future that is better in important ways than what now exists. A mission

4. The essence of the strategic management process is adapting to change. Discuss.

It’s been said that change is the only constant in any organization’s life today, and with changes in an

organization’s external environment comes opportunities or threats. Organizations that can proactively adapt to

5. Describe the role of leadership in successful change implementation.

Experts stress the importance of leadership involvement throughout the change management process. There has

been much focus on strategies that leaders can use to effectively manage change rather than simply reacting to

it. These strategies include articulating a compelling reason for change; having open and regular

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Leadership must make every effort to eliminate policies, procedures, and behaviors that undermine the change

efforts. Followers who are charged with implementing change must see in the behavior of their leaders an

6. Why is organizational change often perceived as a win-lose proposition between leaders and followers?

Change implies learning new ways to do things. Change can disrupt the status quo and lead to stress,

discomfort, and for some even dislocation. These conditions motivate people to resist change. Resistance is a

CRITICAL THINKING QUESTION ANSWERS

Applications may also be used as class discussion questions or written assignments to develop communication skills.

These communication questions are included in the test bank in the application section.

1. What, in your opinion, are the risks and benefits of the previous leadership arrangement at Google,

where the two founders (Larry Page and Sergey Brin) elected to bring in Eric Schmidt to be the CEO

while they functioned as presidents under him? (Not used in PPT)

2. Comment on this statement: “Google is so successful it does not need to change anything in its strategic

framework.” (Not used in PPT)

3. As leaders make strategic decisions, they must balance the interests of various stakeholders—employees,

customers, shareholders, suppliers, unions/activists, and the community. Describe the best approach for

doing this.

The best approach is for leaders to seek a fitting balance between the interests of all stakeholders both when

4. Many decisions made by strategic leaders benefit some people at the expense of others, thus raising

ethical issues. Give specific examples for each of the following categories of unethical behavior:

 Breaking laws or evading regulations

 Legal but unethical behavior

 Acts of omission rather than commission

5. For CEOs and many other senior executives, strategic leadership is an important role they must perform

well. Briefly describe some of the specific actions or responsibilities of the CEO that strategic leadership

entails.

Strategic leadership must involve managers at the top, middle, and lower levels of the organization. However,

of these three managerial classifications, top-level managers (strategists) are clearly held responsible for the

 Anticipating and forecasting events in the external environment that have the potential to impact

business performance—they observe from the outside in.

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6. Resistance to change is more likely to succeed if the forces resisting the change are stronger than the

forces driving the need for change. Describe some of the specific tactics that resisters could employ to

thwart change efforts.

Answers will vary.

CONCEPT APPLICATION ANSWERS

There are similar questions in the test bank in the application section.

Concept Application 11-1—Strategic Management Process

d 1. Objectives

h 2. Strength/Weakness

Concept Application 11-2 Strategic Leadership

b 11. Operational leader/Manager.

a 12. Strategic Leader

Concept Application 11-3 Resistance to Change

c 21. Lack of confidence that change will succeed.

CASE ANSWERS

Nike in the Era of CEO Mark Parker

1. What external and internal pressures did Mark Parker face when he assumed the leadership of Nike, and

how did he respond to these challenges?

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Parker faced internal pressure from his boss, Phil Knight, and from the entire Nike organization and its

shareholders. After only 13 months on the job, Knight replaced CEO William Perez, his hand-picked successor,

Parker has also faced external pressures from Nike’s customers and competition, taking the helm of Nike at a

time when the stakes are particularly high, especially as Adidas has become more powerful with the acquisition

2. Strategic management is about formulating strategies that align an organization’s internal capabilities

with external opportunities while avoiding or minimizing threats. How effective has Mark Parker been as

a strategist so far?

One can say that Parker has been very successful as a strategist so far; especially given how the company is

currently performing financially. Since assuming the role of CEO at Nike, Parker has overhauled the way Nike

runs. He has enhanced value to Nike’s customers by shifting Nike’s brand away from the previous sub-brand

3. What is the evidence that Mark Parker and Nike understand the impact of environmental sustainability

on their business practices?

Nike has what it calls “Nike Sustainable Business + Innovation” program. Nike believes it can use the power of

its brand, the energy and passion of its people and the scale of its business to create meaningful environmental

4. An effective strategist develops strategies that (1) enhance value to its customers, (2) create synergistic

opportunities, and (3) build on the company’s core competencies. What evidence shows that Mark Parker

is pursuing this course or shares this viewpoint?

As mentioned in the answer to Question #2, Parker has enhanced value to Nike’s customers by shifting Nike’s

brand away from the previous sub-brand and product-based structure to a customer-driven structure by

organizing Nike into six “customer-focused” categories, such as running, basketball, and women’s fitness. He

Cumulative Case Questions

5. According to the Big Five Model of Personality, what traits would Mark Parker consider critical for his

managers to possess (Chapter 2)?

Parker would most likely consider all of the traits in the Big Five personality dimensions to be critical for his

managers to possess. He would want his managers to be strong in surgency, with interests in getting ahead and

leading through influencing. He would also want his managers to be strong in agreeableness—to be warm and

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6. Communication, coaching, and conflict management are said to be skills that have a direct and

significant impact on a leader’s career success (Chapter 6). Given the weak market and financial position

that Nike was in prior to Mark Parker’s appointment, how critical are these skills in his efforts to

reposition the company and address its weaknesses?

At the strategic level of an organization, it is crucial that strategic leaders fully appreciate the interface that

occurs between the internal and external systems of their organization. A leader must be able to effectively

communicate in order to pass on his or her vision, mission, and strategies to subordinates. Interpersonal

competencies prepare the leader to interact and relate with others easily, especially when trying to implement

change. Effective leaders must not only be effective communicators, but also must be able to play a coaching

CASE EXERCISE AND ROLE-PLAY

Assign the exercise ahead of class time so students can prepare. Place students into small groups and have each

group formulate its diversity statement using the guidelines provided in the text. Each group should present its work

VIDEO CASE ANSWERS

Original Penguin Spreads Its Wings

11. Why has it been important for Perry Ellis International to give freedom to a new venture team to launch

Original Penguin?

Giving Chris Kolbe and the new venture team freedom to operate almost independently is important because the

12. In what respects does Original Penguin represent a cultural change for Perry Ellis?

Developing Your Leadership SKILL 11-1 IDEAS AND ANSWERS

Strategic Planning

Total Time (10–35 minutes)

Select an option and the total amount of time you want to spend on it.

Testing on Developing Your Leadership Skill 1

You may simply ask students to complete any number of the four steps from the exercise on an exam.

Test Questions and Answers (Also found in Test Bank)

Based on the business you selected to start in Skill-Development Exercise 1,:

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1. What would be some of your strengths and weaknesses, opportunities and threats, compared to your

competitors?

Solution:

2. Develop a vision statement for your business.

Solution:

3. Develop a mission statement for your business.

Solution:

4. As part of the strategy formulation, identify your core competencies. Be sure they answer the questions, “What

will your business do better or different than your competitors? Why should someone do business with you

rather than your competitors?”

Solution:

Developing Your Leadership SKILL 11-2 IDEAS AND ANSWERS

Planning a Change Using the Force-Field Model

Total Time (10–35 minutes)

Select an option and the total amount of time you want to spend on it.

Testing on Developing Your Leadership Skill 2

You may simply ask students to turn in their plan from the exercise on an exam.

Test Questions and Answers (Also found in Test Bank)

1. Based on the planned change you selected in Skill-Development Exercise 2, write out your plan using the force-

field model.

Solution:

Developing Your Leadership SKILL 11-3 IDEAS

Managing Change at Your College

Total Time (10–35 minutes)

Decide whether you would like this exercise to be individually-based or group-based, and determine the amount of

class time you would like to spend on it.